-Rents are at their highest level in two years; the year-over-year pace has accelerated over the past 4 quarters.
-Use of concessions has all but evaporated with only 3.7% of new rentals having some sort of give back from landlords.
-Largest year-over-year rental price gains seen in smaller apartments.
-Tight credit conditions, rising rents and improving regional economy are pushing more tenants into purchase markets.
Here’s an excerpt from the report:
The average rent was $3,778, the highest rent in two years as tight mortgage lending conditions and regional economic gains continued to drive rental prices higher. Median rent was $3,125, the second highest level over the same period. Since landlord concessions were used in only 3.7% of new rental activity with those transactions averaging only 1 month of free rent, the year-over-year gain in median rent with or without concessions was the same at 7.9%. The average year-over-year median rental increase in each quarter of the past year has been 7.6%, indicating there has been no ease in the pace of rental price gains…
Here’s some of the media coverage for the report today.